Amazon and Whole Foods slash grocery prices

Breaking down how the tech giant's acquisition of the grocery store will affect your wallet.
2:45 | 08/29/17

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Transcript for Amazon and Whole Foods slash grocery prices
consumer alert. Amazon is taking on the supermarkets by taking over whole foods and cutting prices on staples by up to 40%. It could be the start of a major price war and Adrienne Bankert has the story. Good morning, Adrienne. Reporter: How excited are you that whole foods is no longer going to cost your whole paycheck, guys. Yeah, thank you. In Manhattan they sold completely out of some items by 6:30 P.M. The reaction online staggering as customers enjoyed phenomenal deals. Whole foods has had a reputation for being way too expensive. From the looks of things that is changing. This morning a grocery revolution that could have a direct impact on your bill. The first changes now from that ambitious purchase by Amazon of whole foods, the chain slashing its prices in almost 500 stores Monday and up to 43% drop on some of your most popular products from bananas to avocados, apples and eggs. Rotisserie was flying off the shelves. Reporter: The big question will they match? They're conventional stores. What will happen? They'll change. If they don't they're out of business. Reporter: Retail experts weighing in on whole foods and Amazon's move could set off a boom of benefits. We're seeing price drops in whole foods. In the long term we're going to see a lot more competition for grocery stores, especially those that cater to the high earner demographic. Reporter: And is it megastore Walmart that Amazon and whole foods really have in their sights with these drops? Amazon with this acquisition of whole foods and that price drop is really trying to take that market share away from Walmart, especially when it comes to grocery and they're getting very close. Reporter: And more changes in store with Amazon's brand. The echo on sale next to the quinoa and kale. So it's really phenomenon flal how far prices have dropped. Some example. We went to a whole foods in new York City, a couple. Fuji apple, organic kind, $3.49 a pound. Now only $1.99 a pound. That 43% drop and Hass avocados like the one I have in my hand here, 2.99 a pound last week. Now they're just $1.99 a pound, 33% savings. A lot of people saying they want their avocado toast and guacamole. Now you can have a lot. It will depend on the store as to what the price drops will be but you'll see a lot of those sale signs and I think everybody will be happy about it. The lines will be even longer than they already are. That's the thing. We talked to some people would said that there was stuff that was cleared out yesterday and a lot of people going for the avocados. Those price, it's worth it. Worth standing in line. It is true, everybody always says that joke the whole foods whole paycheck. I'm glad you pointed that out. Not anymore. No more. Thank you.

This transcript has been automatically generated and may not be 100% accurate.

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